SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: Haim R. Branisteanu who wrote (62398)4/1/2010 2:31:18 AM
From: Haim R. Branisteanu  Read Replies (3) | Respond to of 218055
 
The power of 3

On Y2K "Suzy and Mark" have 3 children
On Y2K "Mary and Jack" have 3 children in theory the children marry "Suzy and Mark" children

By 2025 "Suzy and Mark" have 3 children and 9 grandchildren
By 2050 "Suzy and Mark" have 3 children and 9 grandchildren 27 grand - grandchildren (assuming no one dies as a result of good health care.)

So "Suzy and Mark" and "Mary and Jack" are in their mid 70thies and the extended family has grown from 4 to 43 - frightening

Can the world sustain such population growth at acceptable standard of living? - NO WAY



To: Haim R. Branisteanu who wrote (62398)4/1/2010 3:03:57 AM
From: elmatador  Respond to of 218055
 
Haim, how will the world economy will look like once USD is no longer the currency of choice?

USD was the currency of choice to avoid debasing in all countries that official currency became useless. (I stashed USD in a drawer in Brazil during that time or kept my money in DM in Munich)

Also the currency for drug dealing and all kinds of shady business. Official country of laundry and parking money was Switzerland.

(I used to call Switzerland the world matresse)

As the world economy grew Switzerland got competition as other enter into the arena, Caribbean, some islands in Europe and so on.

As the USD loses confidence of the world, the goods start being used as hedge.

See VLCC loaded with oil parked in the world after July 2008. That is much worse than keep money in Switzerland.
One can buy PBR shares and Vale is a better proposition. But that has a limit too.

TJ salivates as he reads that. Gold is the material of choice.
But there is a limited availability of that stuff around.



To: Haim R. Branisteanu who wrote (62398)4/1/2010 5:21:34 PM
From: RJA_  Respond to of 218055
 
Population will either decrease in controlled sane way... or in insane uncontrolled way.

Which is preferable?

Unfortunately, we see many examples of insanity.

The world has a finite carrying capacity... and as population increases, quality of life generally decreases. At some point population density decreases quality of life, never mind use of resources to extinction.

Re economies based on relatively finite supply of precious metals:

If economy expands, world will be in constant state of deflation. Money will grow in value over time. Not so bad for savers. Investments to be viable will have to return more than the increase in money value from merely holding same. This can be done as world was on a gold standard from roughly 1820 to 1914... and this was during a period of rapid industrialization. Of course, lots of gold and silver were being located during this time also.

Credit would be used less... perhaps barter would be used more... and people would save.

Not so bad actually, and it might work.

It is possible that you could have a two tiered system: Precious metals used for savings (maintaining and increasing value) and fiat money used for transactions as medium of exchange.